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Re: kthomp19 post# 784664

Thursday, 02/01/2024 9:06:36 AM

Thursday, February 01, 2024 9:06:36 AM

Post# of 792888
Citi's conversion occured to recover principle+10%

In case of GSEs, GSEs already paid principle+10%+ $30B. Therefore, senior to common conversion is rap.

Bailout interest rate in 2008
If TBTF pay all bailout amount within 5 years then 5% interest.
If TBTF pay all bailout amount after 5 years then 10% interest.

That's why CITI & GSEs have to pay 10%.